What is APR and How It Affects Payments

Purchasing a new car may prove filled with anxiety. There’s the choice of models and trims, and all sorts of features to consider. Then comes financing and the parameters comprising.

At Courtesy Subaru of Chico, we’d like to assist with this last aspect to car shopping in-detail – APR and how it impacts payments.

What is Annual Percentage Rate (APR)?

When looking to finance, you’ll have monthly payments that work the way to full ownership of your vehicle. There’s the principal amount, which consists of the actual vehicle price settled on.

Then, there’s the interest or APR that’s applied to the principal amount financed.

In best of times, the Annual Percentage Rate offered may comprise a low percentage. This may serve as an enticement or special offer a dealership will advertise.

Credit also has an influence on the rate offered. The higher your credit score will see an APR that’s reduced and reflective of past accounts being paid on time.

In essence, the lower APR applied is the more cash saved for the duration of your payment term.

Helpful Tips When Subaru Shopping

It’s important a client is well prepared for the various nuances of car shopping.

And given the comprehensiveness of Courtesy Subaru of Chico, many shopping tasks may be handled and completed online. This will include an online finance application, valuing your trade and exploring options in financing.

Such conveniences help things along when visiting our Subaru dealership for the latest in Subaru or those certified pre-owned (CPO) models with brand backing.

Courtesy Subaru of Chico – It’s All in Our Name

Feel free to contact us and speak with our sales or finance professionals for more information.

With the knowledge gained, an informed decision may be met with ease.